The borrower borrows from the lender with the company's equity (shares) held by himself or a third party, as long as the lender allows it, there is no need to meet special conditions. Generally speaking, the borrower should be an enterprise (institution) legal person, other economic organizations, individual industrial and commercial households or a China natural person with full civil capacity approved and registered by the administrative department for industry and commerce (or the competent authority). If the borrower is different from the pledgor, the pledgor shall be the legal owner of the pledged equity and have the right to pledge the equity.
Legal basis: Article 440th of the Civil Code of People's Republic of China (PRC). The following rights that the debtor or a third party has the right to dispose of may be pledged:
(1) bills of exchange, promissory notes, checks, (2) bonds, certificates of deposit, (3) warehouse receipts and bills of lading, (4) transferable fund shares and stock rights, (5) transferable property rights in intellectual property rights such as the exclusive right to use registered trademarks, patents and copyrights, (6) existing and future accounts receivable, and (7) others that can be pledged according to laws and administrative regulations.